United holds out hope for summer travel on vaccine progress

United predicted that sales will rebound next summer as vaccines take hold, even as the company echoed rivals in warning that surging coronavirus cases have caused near-term demand to weaken over the past month. Bookings for Q3 2021, the heart of the airline industry’s peak season, will only be 40% below pre-pandemic levels, United said Friday in a regulatory filing. By comparison, the carrier expects a 70% decrease this month and next. “Recent positive results in vaccine development and efficacy show an encouraging line of sight to the other side of the pandemic,” United said in the filing. “While it will take time for the vaccine to be widely distributed, the company’s confidence is even stronger in the recovery and the trajectory of the rebound in 2021 and beyond.” To get there, however, the airline will have to endure a worsening short-term slump. The increase in Covid-19 cases has caused a “continued deceleration in forward bookings,” United said, and Q4 sales will be down abut 70% from a year earlier. The company said it would burn $24m to $26m in cash each day during the period, plus $10m in debt payments and severance costs. In Q3 of this year, the company went through $21m plus $4m in debt and severance.<br/>